A think tank has warned that a customs union with the European Union could let down cities in Britain by failing to protect their trade in services.
A leading trade expert has also slammed Westminster and the media for neglecting the services sector of the United Kingdom in debate over the future of Britain. It also warned that it could be a “mistake of historic proportions.”
Fresh figures from the Centre for Cities reveal that cities are particularly dependent on the export of services, making up 77 percnt of the UK total, as compared to 52 percent of goods exports.
It reveals that any customs arrangement between the United Kingdom and the European Union would probably “protect trade in goods but overlook trade in services.”
A report that was released by the think tank urges the UK government to concentrate on making sure that service exports are not “penalised” in a future deal with the European Union.
The chief executive of the Centre for Cities, Andrew Carter, stated: “A goods-only customs arrangement would leave services, which comprise the majority of Britain’s exports to the EU, facing trade barriers.”
He added: “This scenario could limit the economic prosperity of many of Britain’s cities and the millions of people living and working in them.”
The warning of the think tank shines a light on the apparent neglect of services in both the policies of the main parties on future relationship of the United Kingdom with the bloc, and in much of the wider debate over Brexit.